A new report from the International Labour Organisation (ILO) reveals that climate change severely impacted 71% of the global workforce by 2024, leading to significant productivity losses. Vulnerable populations, particularly low-income workers, are expected to face the most severe consequences.
The report, titled State of Social Justice: A Work in Progress, highlights that although low-income earners contribute only 12% of global emissions, they will suffer 75% of income losses caused by climate-related disruptions. This underscores the disproportionate impact on the world’s most vulnerable workers.
As countries shift toward cleaner energy sources, the ILO predicts the loss of six million jobs in the fossil fuel sector. However, the report also notes that this transition could create approximately 24 million new jobs in renewable energy and green sectors.
A significant workforce adjustment is expected, with at least 70 million workers needing to acquire new skills. To manage this upheaval fairly, the ILO has called for a “just transition” and recommended policies that promote decent work, reduce inequality, and involve social dialogue to ensure that environmental measures do not exacerbate existing disparities.
The report estimates that, to limit global warming to a maximum of 2 degrees Celsius, the measures required may result in job losses of around six million in fossil fuel industries. At the same time, sustainable practices in energy generation, construction, and transport could create 24 million jobs. When including transitions to sustainable agriculture and the circular economy, the net impact is expected to be positive, with over 100 million jobs potentially created, compared to 80 million that may be lost.
However, this transition will require substantial reskilling efforts, as the report highlights that 70 million workers will need new skills.
The report also discusses demographic shifts, noting that high-income and upper-middle-income countries will experience a 5% decline in their labor force between 2030 and 2050. Meanwhile, low- and lower-middle-income countries will see their labor forces grow by 30% during the same period.
While acknowledging the progress made in education, poverty reduction, and productivity, the report also emphasizes the need to address ongoing inequalities. Despite global improvements in wealth, health, and education, the benefits have not been equally distributed, and progress in reducing inequality has stalled.
The report also highlights persistent issues, including the fact that 71% of earnings are still determined by factors such as country of birth and gender. Informality in the labor market remains widespread, affecting 58% of workers, and the gender labor force participation gap remains at 24%. The global gender pay gap is predicted to take a century to close at current rates.
